Prada S.p.A.

We are one of the world's most renowned fashion and luxury groups. We design, manufacture, promote and sell premium leather goods, ready-to-wear and footwear through the Prada, Miumiu, Church's and Car Shoe brands. Our Prada and Miu Miu brands provide customers with a variety of high-quality luxury goods, including leather goods, ready-to-wear and footwear, as well as eyeglasses and perfumes through licensing agreements. Our Church's and Car Shoe brands target the niche luxury footwear market and offer shoes handmade from high quality leather. We believe that our commitment to providing innovative products of the highest quality, combined with the novelty of design and material selection, and our unique insight into luxury and style has made us a leader in the fashion and fashion market. Each of our brands is highly creative, of excellent quality, and unique, and has individual characteristics founded and maintained by independent design, product development and marketing teams. Our brand management focuses on protecting and enhancing brand reputation and reputation, and we carefully manage each brand's communication strategy to avoid weakening the brand. We use specific communication methods for individual brands, and in some cases we will also use communication methods that break the rules, such as holding fashion shows, sponsoring art, cultural and sporting events, building landmark Prada super flagship stores, and holding various events to enhance the individuality of the brand and highlight its unique elements and values. We maintain our manufacturing technical knowledge and production capacity for each product category from within through 11 in-house production facilities (10 in Italy and the other in the UK, which specializes in Church's shoes). Currently, we set up our own factory to manufacture most prototypes, most samples, and some finished products, and outsource the rest of the production process to an external manufacturer. We maintain long-term stable relationships with most external producers. We will appoint quality control teams and inspectors to strictly monitor our entire production process to ensure that internal and outsourced production meets the same high quality standards required by us and our customers. We believe that our production model allows us to control production technology knowledge and production costs, and maintain flexible production capacity throughout the production process while ensuring excellent product quality. We distribute our products through retail and wholesale channels. As of January 31, 2011, our retail channel included 319 stores directly operated by us (“Direct Stores”), including Prada's super flagship stores and 18 discount stores in New York, Los Angeles and Tokyo. We plan to open about 80 more direct-run stores (after deducting the number of closed stores) in the financial year ending January 31, 2012. Of these, about 25 (after deducting the number of closed stores) will be located in the Asia-Pacific region. All direct-run stores are strategically located in specially selected prime locations to match our brand image. Our wholesale channels include high-end luxury multi-brand stores, department stores, and franchised stores. On January 31, 2009, 2010 and January 31, 2011, we had approximately 1,800, 1,400 and 1,400 wholesale customers respectively. In the same period, we had 32, 35 and 33 franchised stores respectively. We continuously monitor our wholesale business to protect our brand reputation. Our two-pronged distribution strategy helps us maintain our global business coverage. As of January 31, 2011, we had distribution locations in over 70 countries. During the record period, our net sales increased from €1,643.6 million for the fiscal year ended January 31, 2009 to €2,046.7 million (CAGR of 11.6%) for the fiscal year ended January 31, 2011. EBITDA increased from €282.6 million to €535.9 million (CAGR of 37.7%) during the same period, bringing our EBITDA ratio from 17.2% of the fiscal year ended January 31, 2009 to fiscal year ended January 31, 2011 26.2% of the year.